Municipal bonds as an instrument for financing local governments

Increasing demands for improving the living standards of citizens at local level require authorities to find new sources funding. The experiences developed countries and fact that traditional financing governments are insufficient, indicate growing importance municipal bonds. author emphasizes special specifics bonds as a security. In addition, typical types have been identified, indicating characteristics each. benefits issuing bonds, i.e. advantages investing in this type securities, were highlighted. Empirical research has shown which municipalities cities Republic Serbia decided issue under what conditions purpose was made.